Arhaus, Inc. is anticipating an increase in net revenue for the full year 2024, with expectations ranging from $1.27 billion to $1.28 billion, representing a rise of approximately $35 million compared to previous estimates. The company has also indicated an improvement in demand comparable growth(2) for the fourth quarter of 2024, with an approximately 6% increase despite a low-single-digit demand comp decline in October.
The updated revenue outlook and improved demand comparable growth(2) are attributed to the strength of Arhaus' product offerings and the effectiveness of its marketing campaigns. Additionally, the company plans to continue driving growth through sourcing new product offerings, expanding its showroom footprint, enhancing its brand awareness, and improving its omni-channel capabilities. This entails making necessary investments to support its growth initiatives.
In terms of financial results, Arhaus has adjusted its comparable growth(1) expectations, with the current guidance indicating a decline between 9% to 8% for the full year 2024, which represents an improvement compared to previous expectations of a decline between 12% to 11%.
Aside from the updated financial outlook, the company also disclosed the departure of Dawn Phillipson, the Chief Financial Officer, who is stepping down to pursue another career opportunity outside of the home furnishings industry. Arhaus expressed gratitude for Phillipson's significant contributions over the past nine years and mentioned that an external search for her successor is actively underway.
As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $9.46. For more information, read the company's full 8-K submission here.
